Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 06-22-2007, 09:05 AM   #1
Recycles dryer sheets
Join Date: May 2006
Posts: 230

Not quite an individual security question, but . . .

FBIDX is Fido's total bond index funds and BND is Vanguard's total bond index ETF. Vanguard's ER is .11% and Fido's is .31%. The holdings (duration and quality) are very similar as they should be. Current 30-day yields are 5.16% and 5.41%

Assuming the commission is not material, is there any reason to hold onto FBIDX in lieu of buying BND?

They move up and down together so I assume buying one and selling the other at the end of day NAV is pretty much a wash.

The only reasons I can think of are the convenience of one-day withdraws and not paying commissions for purchases and sales, but this is just "secondary cash" behind the money market fund, so I've never touched it so the commmissions are immaterial. Is there anything else I haven't considered? Some other reason not to hold a bond fund as an ETF?

terminator is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-22-2007, 10:05 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
dex's Avatar
Join Date: Oct 2003
Posts: 5,094
I would think the only difference is the purchase/sale costs. If you are averagering in or out the costs becomes important. I think you can average into the Vanguard Total Bond fund and then convert it to the ETF for free.
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
dex is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT -6. The time now is 02:24 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.